{"id":158661,"date":"2019-10-29T09:30:54","date_gmt":"2019-10-29T13:30:54","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158661"},"modified":"2019-10-29T09:21:18","modified_gmt":"2019-10-29T13:21:18","slug":"uk-election-2019-expect-the-pound-and-uk-financial-assets-to-be-increasingly-volatile","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/uk-election-2019-expect-the-pound-and-uk-financial-assets-to-be-increasingly-volatile\/","title":{"rendered":"UK Election 2019: Expect the pound and UK financial assets to be increasingly volatile"},"content":{"rendered":"
October 29, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The pound and UK financial assets will be volatile in the run-up to Britain\u2019s first December general election since 1923 \u2013 and will remain so in the event of another hung parliament.<\/p>\n

This is the warning from Nigel Green, CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory organizations, as opposition party Labour announces it is now backing the government\u2019s bill for a December election, regardless of the date.<\/p>\n

Mr Green comments: \u201cThis is a critical stage in the slow-moving, damaging, torturous Brexit saga.<\/p>\n

\u201cExpect the pound and UK financial assets to be increasingly volatile in the run-up to the general election, given the wide-ranging set of outcomes.<\/p>\n

\u201cThe most detrimental of these outcomes for sterling, UK financial assets and the wider British economy,\u00a0include another hung parliament or a victory for Jeremy Corbyn\u2019s Labour party.\u201d<\/p>

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He continues: \u201cBoris Johnson\u2019s intention to secure a majority within the House of Commons is by no means guaranteed.<\/p>\n

\u201cThe Brexit Party will use the fact that Mr Johnson did not deliver Brexit by October 31 – something on which he staked his whole premiership.<\/p>\n

\u201cThe Remain vote could also be split between Labour, the Liberal Democrats, the Greens and the Scottish National Party.<\/p>\n

\u201cPolitical fragmentation on this scale has never happened before in the UK.<\/p>\n

\u201cTherefore, a hung parliament looks like an alarming possibility, meaning there could be no majority to quickly and smoothly resolve the Brexit chaos.<\/p>\n

\u201cShould grinding deadlock continue, the UK economy would still haemorrhage\u00a0investment and confidence. The fallout of Brexit has cost the UK three and a half years of lost opportunity and many, many tens of billions of pounds. This would only intensify with another hung parliament.\u201d<\/p>\n

He adds: \u201cMeanwhile Jeremy Corbyn\u2019s Labour party will campaign on the most radical, left-wing manifesto in more than a generation.<\/p>\n

\u201cShould he win this election, his anti free-market policies – such as the re-nationalisation of industries from utilities to railways to postal services, and the forcing of companies to give 10%\u00a0of their shares to staff – plus his high-tax policies, including a possible wealth tax, will spook the financial markets, hit long-term sustainable growth of the British economy, put more pressure on UK financial assets, and lead to a significant sell-off of the pound.<\/p>\n

Mr Green concludes: \u201cThe general election is set to be the most contentious and uncertain in generations. Investors now need to protect and build their wealth and assets by ensuring they are properly diversified across asset classes, sectors, currencies and regions.\u201d<\/p>\n

About:<\/strong><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The pound and UK financial assets will be volatile in the run-up to Britain\u2019s first December general election since 1923 \u2013 and will remain so in the event of another hung parliament. This is the warning from Nigel Green, CEO and founder of deVere Group, one of the world\u2019s largest independent financial […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-158661","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=158661"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158661\/revisions"}],"predecessor-version":[{"id":158662,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158661\/revisions\/158662"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}